Great Elm Group, Inc. Leases Disclosure
10. Lessee Operating Leases
The Company leases office spaces in Boston, Massachusetts and Charleston, South Carolina under operating leases. Through December 2024, the Company also leased office space in Waltham, Massachusetts. The following table summarizes operating and variable lease cost and cash paid for amounts included in the measurement of lease liabilities for the years ended June 30, 2025 and 2024:
|
|
For the twelve months ended June 30, |
|
|||||
(in thousands) |
|
2025 |
|
|
2024 |
|
||
Operating lease cost |
|
$ |
492 |
|
|
$ |
399 |
|
Variable lease cost |
|
|
59 |
|
|
|
66 |
|
Cash paid for operating leases |
|
|
493 |
|
|
|
436 |
|
The following table provides details on the leases presented in the consolidated balance sheets as of June 30, 2025 and 2024:
|
|
June 30, 2025 |
|
|
June 30, 2024 |
|
||
Weighted-average remaining life |
|
4.3 years |
|
|
1.9 years |
|
||
Weighted-average discount rate |
|
|
8.1 |
% |
|
|
8.9 |
% |
The following table provides a maturity analysis of the Company's operating lease liabilities as of June 30, 2025:
(in thousands) |
|
June 30, 2025 |
|
|
For the year ending June 30, 2026 |
|
$ |
474 |
|
For the year ending June 30, 2027 |
|
|
421 |
|
For the year ending June 30, 2028 |
|
|
417 |
|
Thereafter |
|
|
569 |
|
Total lease payments |
|
$ |
1,881 |
|
Imputed interest |
|
|
(266 |
) |
Total lease liabilities |
|
$ |
1,615 |
|
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.